Rand flat, market eyes public sector wages | Fin24
  • Load Shedding Schedules

    Find information for Johannesburg, Durban, Cape Town and other cities.

  • Lockdown

    Once restrictions are lifted, will customers return to SA's malls?

  • Exchange Rates

    The rand is approaching the R20/$ mark. Here's why you should care.


Rand flat, market eyes public sector wages

May 19 2015 10:41

Johannesburg - The rand was largely stable against the dollar in early Tuesday trade, with sentiment likely to be driven mainly by the outcome of public sector wage talks as well as key data out of the US and UK.

The government has offered a 7% wage hike, which it hopes workers will accept to avert a potentially crippling strike.

On Monday, Finance Minister Nhlanhla Nene warned that the public sector wage bill was a risk to the budget. Nagging shortfalls on both the national budget and current account have long been a drag on the rand.

READ: Deadlock in public wage talks could spell damaging strike

At 08:02, the local unit traded at R11.8750/$, barely changed from Monday's close at R11.8875.

Market sentiment would be mainly externally driven during the session, with eyes on UK inflation and US housing data, Standard Bank trader Warrick Butler said.

"Watch the local wires for any news out regarding the public wage sector negotiations. A dual statement is due today from both counterparties and the result will have a large impact on South Africa's fiscal situation," Butler added.

In fixed income, government bonds were slightly weaker, with the yield on the 2026 benchmark paper adding 1.5 basis points to 8.065%.

rand  |  markets  |  currencies


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

Voting Booth

Do you support a reduction in the public sector wage bill?

Previous results · Suggest a vote